Question 1

Why does the best bank change when I change the tenure?

Accepted Answer

Because each bank publishes a ladder of tenure bands rather than one rate, and the ladders do not line up. Kotak leads over two years and comes fourth over five on these cards. That is the whole reason this page prices your actual tenure at every bank instead of showing you a headline rate.

Question 2

Why is a bank shown with no figure at all?

Accepted Answer

Because our dated card for that bank publishes no band covering your tenure, so there is no rate to quote and we will not invent one. HDFC’s published recurring deposit runs in quarter-year steps, so it quotes 12 and 15 months and nothing in between. The bank is shown rather than hidden so you know we asked, and it is kept out of the ranking, because scoring an absent rate as zero would push a bank that might be the best to the bottom of the table.

Question 3

Do senior citizens get a better rate on an RD?

Accepted Answer

Yes, at all five banks here, usually around half a percentage point, and every one of them publishes a senior rate at every band it quotes. That is why the switch applies to all five at once. A comparison that used the senior card for some banks and the regular card for others would be worse than no comparison at all.

Question 4

How is a recurring deposit different from a fixed deposit?

Accepted Answer

You pay in every month rather than once, so each instalment earns for a different length of time. The first one compounds for the whole tenure and the last for barely a month, which is why the interest looks small against the total paid in. Compare an RD against an FD only if you actually have the lump sum today; if you do not, the RD is the honest comparison.

Question 5

What happens if I miss an instalment?

Accepted Answer

Most banks charge a penalty and some close the account after several misses. None of that is modelled here, which assumes every instalment is paid on time and the deposit runs to maturity. Closing early also changes the rate applied, usually to the rate for the period actually completed, less a penalty.

Question 6

Are these the rates I will actually get?

Accepted Answer

They are the published card rates, which is what a retail depositor is offered. Rates change, and the date each card was checked is in the sources below, so confirm with the bank before opening the account. Interest is taxable at your slab rate in every case and TDS applies above the threshold, so a small gap before tax is a smaller one after it.

Bank RD Rate Comparison